midterm

Question 1

What is KSF? What are the 6 components? Why is it important?

Answer 1

KSF are important elements required for companies to compete in their target markets and have successful relationships with customers

E.C.P.I.U.F (employees, customers, product/service, innovation, unique, and center is financial resources

1) Guides strategic/daily actions
2) Ensures success overtime
3) Ensure holistic thinking (looking at it a big picture or broad)

Question 2

What is does each KSF component mean??

HINT ECPIUF

Answer 2

Employees: loyal, productive customers
Customer satisfaction: many loyal advocates
Product/service: value, consistency, reliability
Innovation: valuable change
Uniqueness: valuable sustainable help differentiation with competitors
FINANCIAL PERFORMANCE: good and improving profit and return on investment

Question 3

What is KPI? How does it relate back to KSF?

Answer 3

KPI is a measurable value that helps track KSF

Employees -> turnover, applications, productivity
Customers-> Market share, churn, net promoter score
Product/service -> returns, defects, warranty, claims, and waste
Innovation-> new products, new approaches, idea generation
Uniqueness-> reputation, comparative, performance
FINANCIAL PERFROMANCE-> revenue, profit, ROI, growth

Question 4

Employee Commitment ⇌ innovation/Creativity

Answer 4

• employees who are committed wat to help organization to achieve goals
• they will come up with new goals
• employees like the work they are doing due to innovation

Question 5

innovation ⇌ Quality of product/service

Answer 5

• Generating new products and ideas within company

Question 6

Quality Products and Services ⇌ Competitive Advantage

Answer 6

• Quality products and services leads to a distinct competitive advantage
• High quality creates differentiation

Question 7

Distinct competitive advantage ⇌ Customer Satisfaction

Answer 7

• Customers like the advantage you have more likely to stay loyal
• Lower churn

Question 8

Customer satisfaction ⇌ Financial Performance

Answer 8

• Satisfied customers will be willing to pay more
• More satisfaction will lead to more loyalty
• More revenue for your company

Question 9

What is are the DIAMOND E components?

Answer 9

MANGRIAL PREFERENCE
ORGANIZATION
RESOURCES
STRATEGY
ENVIRONMENT ( XTERNAL)

Question 10

what is Principle LOGIC?

Answer 10

2parts
internal consistency = allows good strategic execution
external alignment = right strategy for environment

Question 11

Explain the 5 components of DIAMOND E YA FUCK?

Answer 11

management = vision, mission, and preferences
Organization = culture, capabilities, and structure
resources = employees, capital, financial
strategy = links external and internal generating strategies off principle logic
Environment = the threats and opportunities / cannot be controlled / find strats to fit environment

Question 12

NAME THE PROS AND CONS OR EXTERNAL ANALYSIS?

Answer 12

PROS

• makes mangers proactive
• provides information
• helps organization with needed resources
• helps with uncertainty
• improves consistency

CONS

• forecast are imperfect
• rapid change
• time consuming

Question 13

Porters generic strategies what is it??

Answer 13

internal and external considerations that distinguish 4 strategies

how a firm chooses between them based on its strength or size

4 are 
cost leadership
cost focus
differentiation
differentiation focus

Question 14

What are the 2 steps of external anlysis

Answer 14

if looking a general Pest identifies trends and changes

if looking more specific porters 5 forces analyzes completive pressure

Question 15

PEST??

Answer 15

are elements that will have an impact on your business causing you to change or consider the 4 factors
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGY

Question 16

PORTER’S 5 FORCES

Answer 16

vertical analysis is competition
horizontal is supply chain

5 forces are
Rivalry if existing firms
Potential entrants
Substiutes
Suppliers
Buyers